Insurance plans can quickly get confusing, especially if this is the first time you’re dealing with purchasing the appropriate insurance for your vehicle. So today, we’re going to not only list, but also explain them in simple and humane terms that everyone can understand:
- Collision coverage
Basically, if your car is damaged in a car accident, collision coverage will cover the costs of repairing it. If the car is totaled, the insurance will award you its appraised market value. However, collision coverage may not be worth your consideration if you’re driving an older vehicle, because it could easily cost you more than the car is worth. As useful as it is, collision coverage will not cover you in case your vehicle simply breaks down. In these cases, a warranty plan is what you need. For example, when buying a new Hyundai vehicle, the Hyundai extended warranty plan is a sensible option to take, since it’s a whole new vehicle.
- Personal injury protection
No matter what you do, you should never find yourself on the road without a personal injury protection. Don’t underestimate how quickly the medical costs resulting from a car accident can accumulate, especially if you live in the US. But with this type of insurance, all of your medical bills will be covered, no matter who is at fault.
- Liability insurance
In normal circumstances, if you’re found to be responsible for a traffic accident, you’re going to have to pay for the vehicle repair costs and the medical bills of the other party involved. Even if you consider yourself to be an attentive driver, you need to keep in mind that sometimes a single night with too little sleep can affect your abilities and lead to an accident. These kinds of liabilities are not to be played around with, as the costs can quickly reach mind-numbing heights. Liability insurance will get you out of trouble even if you are determined to be at fault.
- Uninsured motorist protection
Even though some form of auto insurance is mandatory in most of the countries, in practice, a lot of people decide to drive completely without. You can get stirred into thinking this is solely their problem, but unfortunately, if you get involved in a traffic accident with them, you may not get as much money as deserve (or you might not even get any at all). The good news is that it’s really inexpensive to add this kind of protection to your insurance policy, so you won’t have to worry.
- Comprehensive coverage
This type of insurance covers other unfortunate things that can happen to your vehicle apart from a direct crash: hitting a deer, your windshield getting broken or cracked, your car getting stolen, parking lot scratches… these things are not covered by the regular insurance and will need to be paid for separately. However, this is one of the most flexible things when it comes to auto insurance, as you can simply and effortlessly customize it to fit your personal needs and your budget.
In case you have additional questions, your auto insurance agent will be more than happy to answer them. But to start off with, these pointers should be more than enough for you to get a good idea of what you can expect. Armed with the knowledge you’ve acquired today, go get your own set of wheels, purchase the insurance you need, then enjoy the freedom and mobility only a personal vehicle can bestow upon you!
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